In securities trading, most coverage and advice for the common investor focuses on returns and profits. A fundamental strategy espoused by industry leaders revolves around selecting the best stocks that will provide returns over the long term. Managing risk is important, and a core tactic carried out within the industry. But, for the common investor, according to conventional wisdom, risk management is best handled by diversification and asset allocation. This is based on the maxim that business is cyclical and maintaining a portfolio of diverse investments in quality stocks minimizes risk. In any given cycle, there are high-fliers and as well as laggards. Diversity allows the investor to benefit from this and participate in the financial markets. Despite this, peak performance remains tied to one's ability to pick better securities and increase concentration of the portfolio's exposure to the winners while eliminating losers.